NBIM CEO Tangen Has Three Key Priorities for Sovereign Wealth Fund Organization

Posted on 10/30/2020

Norges Bank Investment Management’s new CEO Nicolai Tangen plans to make his mark at Norway Government Pension Fund Global (GPFG). Tangen replaces his predecessor Yngve Slyngstad.

Tangen released a statement before the Standing Committee on Finance and Economic Affairs of the Storting on October 30, 2020. Tangen acknowledge that using external managers has increased profits for the GPFG and has permitted the fund to avoid some companies with reputational risk.

In Tangen’s statement, it said, “As Øystein mentioned, the Ministry has proposed changes in the composition of the benchmark index. We will sell equities in Europe and buy equities in North America, especially the US. In order to keep transaction costs as low as possible and reduce timing risk, it is wise to implement the change over a long period of time. As stated in the white paper, the Ministry of Finance will decide on an implementation plan in consultation with Norges Bank.”

Tangen added, “I have three priorities for the organisation going forward: return, communication and talent development.

The highest possible return after costs is our main objective. We receive a mandate from the Ministry of Finance, approved by you in the Storting. Our task is to generate the highest return possible. And that is something I and all my colleagues in the GPFG are really passionate about.

My second priority is communication. And by this I mean communication upwards through the governance structure, internal communication in the management organisation, and communication outwards to the Norwegian public and to global markets. We will continue to be transparent about the management of the GPFG.

My third priority is talent development. I want to develop the GPFG into a more diverse and colourful organisation. I think this will result in more creativity, a more dynamic workplace. And this is what we need to make use of the opportunities to generate returns ahead.

The oil fund has been given an incredibly large and important mandate and is a fantastic place to work. It is the place where everyone should want to work, and we want job applicants to the GPFG that are the best in their fields.”

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